Milk Link, News, News: DairyCo Report Highlights Milk Link's Strengths

22 Feb 2010 DairyCo has today published its first Company Strategy and Performance Report which looks in detail at the seven largest milk buyers in Britain.

The independent report, undertaken by Bidwells Agribusiness, highlights that Milk Link is a business that is ‘strong and well-structured’; has ‘performed well against previous plans’; has a ‘current strategy of growing and developing existing markets based upon on appropriate investment and innovation giving significant confidence going forward’, and ‘offers good security of milk demand and projects continued growth in requirements’. 

Overall, the Report concludes that Milk Link ‘has made the most successful foray into becoming an added-value, integrated processor so far’.

A Strong Financial Base 
From a financial perspective the Report states Milk Link has ‘a strong financial base with reducing debt levels and positive cash generation’; has ‘delivered significant increases in turnover with similar levels of operating profit’; has ‘a balance sheet [that] is strengthening with significant reductions in debt and gearing and [that] there is growth in Members’ returns via interest payments and the milk price relative to the market average’. 

A Clear Strategy 
In relation to Milk Link‘s business strategy the Report highlights that Milk Link has ‘a clear strategy in place’; that it has ‘re-aligned and refocused in terms of structures and processes to put their business in the very best position going forward’ and that ‘whilst seeking growth their emphasis going forward is on delivering security and business stability…with a strong emphasis on continuing to drive up customer service and efficiency of operation.’

A Good Reputation in the Marketplace 
From a commercial perspective the Report concludes that Milk Link has a ‘good range of products and reputation in the market place’; that its customer service levels are ‘currently very high based on surveys’ and that ‘more and more milk [is] continuing to move up the value heirarchy’.

Well Resourced
In relation to Milk Link’s processing assets the Report stresses that ‘Milk Link has invested significantly, rationalised and acquired facilities and is well resourced to meet both current and planned future needs’;  whilst its ‘current investment is focused on technological advance and increasing capability as well as innovation.’ 

Commenting on the contents of the Report, Neil Kennedy, Milk Link’s Chief Executive said: “We are obviously pleased that the Report has highlighted many of the key strengths of Milk Link and reflects our strong growth and development over the first ten years of our existence. 

“However, none of this could have been achieved without the support and commitment of our Members.  As such, although it is good to read positive comments about the business I, and everyone at Milk Link, recognise that it is not words in a report that matter but our ability to deliver long term sustainable returns to our dairy farmer Members.  I am confident we will continue to do just that.”

To read a full copy of the report, click here>> See all news Go to top of page

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